Enterprise Zones and Individual Welfare: A Case Study of California*

Abstract

This research examines the benefits to individual workers hired under California's enterprise zone (EZ) program. The analysis reveals that EZ program participation has a positive impact on both wages and adjusted gross income of EZ participants, and the benefits appear to be greater for taxpayers with very low initial income. It is unclear whether the income boost from EZ participation is permanent or transitory. We also find that participation in the EZ program increases the likelihood that an individual will file a tax return. Because this is a case study, we caution that additional analysis is needed to fully determine the extent to which these results can be generalized.